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The right time to sell

Posted by Beach Bum - Created: 14 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by cookies-201009 - 13 years ago

When we purchased our home, the seller (who has her RESIDENCE PRINCIPALE elsewhere) did not pay any capital gains taxes. She just said YES it's my résidence principale - and that end of her capital gains taxes...despite making a HUGE profit off the sale in 4 years.

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Posted by jivebaby-189615 - 13 years ago

Max has friends that have been lucky - As an investor I would always sell at a time of my choosing - Selling WHEN  YOU HAVE TO puts you at the mercy of the market and can cost you 10, 20 or even 30% if you are very unlucky.

I always try to buy when people have to sell -works for me as I dictate the price or walk away. :-) There's always some dope that is overstretched and MUST sell.

JiveBaby@nicetoski.com

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Posted by SuperCat-202366 - 13 years ago

Have a look at this link, which gives a very optimistic view of the property market in France:

http://www.myfinances.co.uk/property/housing-market/buy-let-market/france-top-property-investors-$8154381.htm

 

 

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Posted by Monaco Max-189694 - 13 years ago

The simple answer is: When you need the money and have exhausted all other avenues.

I have a number of friends who have made genuine fortunes out of careful property speculation, and one fact is clear. They have only ever sold property when obliged to.

You may think that funny, but think harder and you will quickly see there are a miriad of ways to release capital without having to sell it. What about borrowing against it, and renting out to cover repayments? There are so many different types of property loan that I don't have time to go into here, but in my honest opinion it is never a good time to sell.

MAX (of Monaco)

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Posted by jivebaby-189615 - 13 years ago

Investment Property

You will or should have driven a hard bargain when buying as you don't live there, so it's not emotional.

When selling, always sell when you don't have to - plan ahead, and then try to sell when everyone esle is looking to buy.

If you are still a UK resident and it is your primary French residence, CGT is 17% acording to my notaire - I must admit I thought it was 16%.

Have assumed you are not trading property, (otherwise you wouldn't have asked the question) in which case high property delaers rates will not apply.

 

JiveBaby@nicetoski.com

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Posted by Nice&Easy - 14 years ago

As to new property its best to sell after 5years or you pay the vat etc  back

 

can be exspensive................

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Posted by mike-179830 - 14 years ago

If you can persuade the notaire that your property investment is your primary residence, then there's no CGT to pay. Otherwise, look at the INFOrmation Page here:

http://riviera.angloinfo.com/information/1/moretax.asp

Note that the CGT legislation changed at the beginning of this year and AngloINFO is still waiting to get the definitive explanation of the new system from our legal advisors.

The Economist article (from the March 11 edition, still on newsstands across the Riviera...) points out that property prices in many markets are rising, to record levels relative to income, the low level of interest rates having allowed more households to borrow more money to fund their purchase.

It refers to papers in the Bank of International Settlement's Quarterly Review which point out that booms tend to be followed by busts and that (in essence) the bigger the boom, the bigger the bust. It refers also to another paper which argues that a period of high inflation followed by one of low inflation (and thus low interest rates) "may well breed misalignments in house prices from their long-term fundamental values". The final sentence: "Translated out of BIS-speak, the central bankers seem to be worried."

Since the BIS Quarterly Review is online (follow the link above), you can read the actual papers themselves even if you're not a subscriber to the Economist. Assuming you are able to translate out of BIS-speak, of course...

**************
Mike

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Posted by Beach Bum - 14 years ago

If gonetospain can post a precise of the article he has it would be appreciated.

So without a doubt, selling a property in the first two years of ownership isnt too smart. By doing this I believe you will be in for Capital Gains Tax at its highest rate .. thereafter it starts to diminish over x years. Is there anyone who is more clued up on this than I. Perhaps Admin might intervene with words of wisdom or better still squeeze a legal firm help on this.

 

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Posted by Admin-179828 - 14 years ago

A gentle reminder that you must not copy and paste content from other websites on to The AngloINFO Forum.-----
Forums Administrator
forums@angloinfo.com

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Posted by TonyP-191937 - 14 years ago

Just after the French gov repeal the tax laws on selling property investments. (Might be a long wait)Tony